Good day. Welcome to the OAS Virtual Investor Day. All participants will be in listen only mode. At the end of today's presentation, there will be an opportunity to answer some of your questions. To ask a question by phone, please click the link or dial the numbers that appear on screen. Please make sure to dial in with questions only at the end of today's presentation. Once connected, please press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Eric Brock, Chairman and CEO of Ondas Holdings Inc. Please go ahead sir.
Thank you, operator. I want to start by welcoming everyone to the Ondas Autonomous Systems or OAS Investor Day. This presentation will be a deep dive into our OAS business and we will get right to it. We start, like always, by highlighting our standard legal disclaimer. We will be making forward-looking statements during the course of our presentation today. Of course, those forward-looking statements are based upon our assumptions about the future and there can be no assurances that those assumptions or financial results will not differ materially from these expectations. We also share non-GAAP financial metrics such as EBITDA. OAS uses non-GAAP financial metrics to highlight operational performance and believes this financial data is helpful for our investors. Of course, additional details are available in our SEC filings. Let's now turn to the agenda. I will once again thank you for attending our Investor Day today.
This presentation again will be a deep dive into our business. We'll be sharing a comprehensive business and financial planning that reflects both the opportunities ahead and the strong conviction we have in Ondas's leadership position in the markets we target. We will start this afternoon with an introduction and corporate overview to set the context. From there, we're going to cover our core technologies and solutions platforms, followed by an in-depth review of our go-to-market strategy and execution framework. We'll then review our financial strategy and model and provide insight into our financial targets for both the near and long term. Throughout the presentation today, we will be emphasizing how we're deploying growth capital with a disciplined and scalable operating and financial model. At the end, we'll close with a strategic roadmap for value creation and leave time for Q&A so we can hear directly from you, our shareholders.
We appreciate your time and interest and are excited to share what we believe is a compelling story with significant upside potential for our investors. Before we dive in, I'd like to briefly introduce the leadership team that's with me here today. Many of you are already familiar with this group, so I'll be brief. Before I do, I want to emphasize that we are extremely busy at Ondas, which of course is a good thing. Our team is spread in different locations for the call, so we decided to deliver this presentation via the audio-only format. With that said, I'm joined by Neil Laird, the CFO of Ondas Holdings Inc., as well as Oshri Lugassy, the Co-CEO of Ondas Autonomous Systems.
From Airobotics we have Meir Kliner, the Founder and CEO of Airobotics , Eitan Rotberg, our Senior Vice President of Product and Marketing, as well as Tim Tenne, the CEO of American Robotics, who's here to update us on the activity with American Robotics and our expansion plans in the United States. Lastly, I want to introduce Roni Kanelbaum, our Vice President of Corporate Development at Ondas Autonomous Systems. Roni joined us earlier in the year and you will hear from her towards the end of the call where she will provide details on our strategic growth initiatives. This team brings decades of proven execution and expertise across defense, security, and aerospace sectors as well as with commercial and financial operations. We have organized the company and our leadership team to execute a high growth plan across geographies and market verticals.
Of course, you're going to hear from each of us throughout the presentation today. Let's begin with a snapshot of Ondas Autonomous Systems and how we're positioned in the market. We operate with headquarters in Baltimore, Maryland and Petah Tikva, Israel to support global sales and customer engagement. We also have commercial locations in Dubai and Singapore to support localized customer engagements in those markets. Across the company, we have 117 employees and have invested over $165 million to build what we believe are amongst the most advanced autonomous drone platforms in the market serving military, homeland security, public safety, and critical infrastructure customers. Our flagship platforms include the Iron Drone Raider, a counter-UAS system designed to secure critical locations and population centers from the growing threat of intruder drones, and the Optimus System, which delivers autonomous aerial security, inspection, and emergency response.
These are proven, scalable platforms with active deployments. Our growing operational footprint includes deployments for military and homeland security forces, true Drone as First Responder or DFR use cases in urban environments, and data-as-a-service infrastructure protection. As we show here, we have a growing list of global reference customers in operational momentum and as you are learning we are positioned to lead what we believe will be a decade-long investment cycle in delivering new AI-enabled defense and security technologies to extremely large and critical end markets. At the core of everything we do at Ondas Autonomous Systems is a simple but powerful mission to protect and secure critical assets, infrastructure, and most importantly, people. Our platforms are designed to deliver aerial intelligence, security, and data on demand, at scale and with military-grade reliability.
This is about more than just impressive technology; it is about enabling safe operations in some of the world's most complex and high-risk environments. Our customers include defense ministries, public safety agencies, critical infrastructure operators, and industrial enterprises, all of whom require real-time intelligence and protection capabilities that are autonomous, precise, and persistent. With our dual-use platforms, we're not only supporting military operations, we're also enabling a safer, more secure future for civilian populations, governments, and private industry across the globe. As you'll see throughout this presentation, the mission is now being realized in the field every single day. The last 12 months have been truly transformational for Ondas, driven by success at OAS. We are successfully making the shift from a technology development company to a growth-stage operator, and our systems have been validated in real-world deployments and delivered results and proven value for customers.
Our technology platforms, Iron Drone Raider and Optimus System, are no longer development systems. They are combat-ready, field-tested, and operational today. Just as importantly, the market is ready, procurement cycles are accelerating, budgets are expanding, and the demand for scalable autonomous systems has never been higher. From a financial perspective, we strengthened the balance sheet significantly. We derisked the balance sheet, reduced debt, and built a strong cash runway. This sets us up to deploy growth capital with confidence. Our financial model now supports scalability, and that allows us to build an institutional investor base to support what we believe will be a leading and extremely valuable defense and security company. Let's take a look at our current financial position, which I believe is one of the strongest indicators of our transformation into a high-growth operator.
Here we are presenting consolidated financials, both OAS and Ondas Networks, as we expect to report $6 million in revenue for Q2 2025 when we report earnings in August. This represents a more than sixfold increase from last year's second quarter and was driven primarily by expanding customer adoption in order fulfillment at OAS. Our backlog has grown significantly from approximately $10 million at the end of 2024 to an estimated $22.8 million today. After removing the expected revenue to be recognized in Q2 for the full year, we are maintaining our guidance of $25 million in total revenue, with at least $20 million coming from the OAS business. We believe this guidance remains conservative given the strength of our backlog, pipeline visibility, and recent momentum on the balance sheet. We've also made tremendous progress.
We've reduced our outstanding convertible notes at the holding company from over $46 million at the end of 2024 to just $5.4 million as of June 30th. Most importantly, we now have a strong liquidity position with over $67 million in cash as of the end of Q2. In short, we are now well capitalized with the resources and flexibility to execute our growth plan in the second half of 2025 and beyond. At the heart of Ondas Autonomous Systems is a multi-platform portfolio built for autonomy, mission readiness, and reliability. Our two core systems, the Iron Drone Raider and the Optimus System, are both fully autonomous military-grade aerial platforms designed to support 24/7 deployment in complex and high-risk environments. This is drone infrastructure. You are well familiar with these systems and we will do a proper technology review and update a bit later here.
I will simply emphasize that these are not just drones, they are full stack end-to-end autonomous systems that include embedded AI, integrated software, command and control infrastructure, and seamless operational workflows. Both platforms are field-tested, scalable, and operational today and backed by reference customers in some of the world's most demanding environments. Now I want to zoom out and look at the key investment highlights that define our opportunity at OAS. First, we have a portfolio of dual-use mission-critical platforms that are already deployed with military and public safety customers worldwide. Second, we've demonstrated clear commercial traction through multiple programs with prominent customers. Those programs are expanding and new programs are being captured in the United States, Europe, the Middle East, and now Asia. Thirdly, Iron Drone Raider is emerging as a potential category-defining solution in the counter drone space.
We see surging demand for effective counter drone tools that are both non-lethal with low collateral effect and reusable, which serves to lower costs. Clearly, Iron Drone stands out in addressing these requirements. Fourth, we are building scalable go-to-market infrastructure in the United States and Europe, both internally and through key partnerships that enhance our reach and operating leverage. In addition, we have launched a strategic M&A program to accelerate growth. We're targeting high-quality, synergistic businesses that will deepen our technology portfolio and expand our market presence, and you're going to learn a lot more about our M&A program today. Lastly, we feel we are doing this from a position of strength with a solid financial foundation, an experienced team, and a vision that is aligned with massive macro and policy tailwinds supporting a strong demand environment for OAS.
We are moving forward at OAS with a clear focus on scalability. Everything we've built, from our technology to our go-to-market strategy to our financial model, is being designed to support high-growth operations at global scale. The schematic you see here represents our framework. You'll see this several times throughout this presentation because we're executing across four integrated layers. It starts with markets and customers. We're focused on high-value sectors like defense, homeland security, public safety, and critical infrastructure. These are large and growing markets with urgent needs for technology capabilities. Our Optimus and Iron Drone platforms are modular, upgradable, and built with embedded AI to meet mission-specific requirements. We will expand on this. Our success at Ondas will boil down to our operating platform and execution across critical operating functions, including sales, marketing, supply chain, field services, regulatory compliance, and more.
We're building this platform in-region and will have localized efforts in major markets, including the United States, Europe, and the Middle East, to deliver at the speed and reliability our customers expect. Our financial platform: we have a strong balance sheet and will deploy a disciplined investment plan to accelerate growth and drive operating leverage for profitability, with a focus on building long-term value. Ultimately, success in our sector will be determined not by technology alone, but by who can deploy and support these systems at scale. That capability around scale is exactly what we're building at Ondas. Now let's talk about the macro environment and highlight why this investment climate is one of the most supportive we've seen in decades for a company like Ondas. Around the world, governments are facing new security threats and making major strategic shifts in how they allocate defense budgets across allied nations.
In short, NATO is lined up to massively grow its defense and security posture. Just recently, non-U.S. NATO members have committed to increasing defense and related infrastructure spending to 5% of GDP by 2035. To put that in perspective, that means over the next 10 years, annual defense spending across ex-U.S. NATO countries will grow by our estimates from about $440 billion today to over $1.2 trillion. That's more than $700 billion in new annual defense outlays and more than two and a half times current levels of spend. This is a seismic shift and a huge tailwind for Ondas and our industry. These dollars are not just going to traditional weapons systems. Nations are fast-tracking investment in AI-enabled autonomy in airspace security and counter-drone protections. Our platforms, Optimus System and Iron Drone Raider, are aligned precisely for these requirements.
We believe this trend will drive significant growth for Ondas not just over the next year or two, but likely for the decade ahead. On the domestic front, the White House and DOD are taking bold action to ensure that the United States drone sector can retain its global leadership in drone and autonomy technologies. In June, the Trump administration issued two executive orders that mark a step change in federal drone policy. These EOs provide critical regulatory clarity and will enable scaled drone adoption in both military and civilian sectors. We emphasize some key highlights here. FAA BVLOS rulemaking, Part 108 regulations, for example, are finally moving forward. We believe this is critically important to reducing hurdles for nationwide autonomous drone operations. Section 2209 will give critical infrastructure operators virtually exclusive airspace over critical infrastructure, allowing commercial DSPs like American Robotics to fly where others cannot.
Of course, federal investment in counter drone infrastructure is surging, and Iron Drone Raider is directly aligned with these priorities. There is the big, beautiful bill, which was signed into law just last week and is allocating over $21 billion across programs that directly support Ondas' business. That includes over $4.2 billion for drones and counter drone capabilities, nearly $1.7 billion for autonomy and ISR, and $2.9 billion for border security. This is the strongest policy tailwind we've ever had and is sure to accelerate demand for secure leadership. American-made, NDAA-compliant platforms like ours. In short, the skies are opening, and we are ready to capitalize on these tailwinds. Let's now dive into the technology.
We'll go back one more.
As an intro, starting with what we call the full stack Physical AI which enables the intelligence, autonomy, and reliability of our platforms. In a moment I'm going to ask Eitan Rotberg, our Head of Product Management and Marketing, to help cover these important topics. First, a few things. We are not simply building drones. We are engineering and deploying vertically integrated mission-ready systems. Our Physical AI full stack spans every layer, edge devices, and onboard compute for real-time mission execution. Multi-sensor fusion whereby EOIR, RF, and micro radar sensors are integrated with embedded AI models at the edge, all supporting autonomous decision making. There's Insightful, our analytics portal, which turns raw data collected with payload sensors into actionable intelligence. What does a full stack Physical AI look like in practice? We'll turn the slide. First, it starts with a world-class engineering team.
We have experts across robotics, aerospace, AI autonomy, and systems integration. Then we combine that talent with differentiated core capabilities. Of course, we are talking about full autonomy at scale. Our platforms don't require human pilots for navigation. Edge AI real-time decision making. Our systems can classify threats, make navigation decisions, and adapt in real time and often under high pressure at high speeds, autonomous infrastructure. We have docking stations and command and control or C2 software which allow for persistent, always-on operations. Whether we're securing an oil refinery, protecting a military base or border, or responding to a drone incursion in a dense urban zone, our systems are built for mission-critical performance and rapid deployment. That's what Physical AI enables and it's at the heart of everything we're doing at OAS.
I'm going to hand the call to Eitan who will dig a bit more deeply into our technology and capabilities. You're also going to hear from Tim Tenne and Meir Kliner before coming back to me. Eitan, the floor is yours.
Thank you, Eric. What I would like to do now is to show how all of these come together in the real world. What we call physical AI deploy. These are not only theoretical systems. Iron Drone and Optimus are in the field today executing real missions under real operational demands. Iron Drone radar is deployed for 24/7 counter drone protection, tracking and intercepting hostile drones autonomously with minimal collateral risk, while Optimus is delivering on-demand ISR in both civilian and defense environments with field-proven reliability and full mission automation. Together these platforms provide persistence, airspace awareness, rapid incident response, and seamless data delivery. Exactly what modern security and defense operators need. We take intelligence and precision of AI and embed it with physical systems that protect people, infrastructure, and national interests. That is what physical AI deployed looks like and that's what Ondas is delivering.
On this slide we visualize the architecture of full stack physical AI, which is the embodiment of deep technology powering both Optimus and Iron Drone radar. At the edge, physical AI is the complex integration and commercialization of highly integrated software and hardware into intelligent systems that can navigate autonomously, collect, and provide mission-critical intelligence. The hardware and the software stack spans from edge devices to onboard computers to decision intelligence and mission execution. This includes the sensors, EO and IR cameras, micro radars, and communications modules that feed data into our onboard AI processors, enabling real-time multi-sensor fusion. The data is then processed through our decision intelligence layer. This is where machine learning models classify threats, analyze mission data, and generate autonomous flight decisions in real time. The system includes a mission execution layer, which includes autonomous flight control, ISR collection, interception protocols, and flight path optimization.
The entire system is connected to our cloud-enabled local insightful intelligence portal, where data is aggregated, visualized, and turned into operational intelligence for the end users. This architecture is not just powerful, it's modular, secure, and scalable. It allows us to rapidly deploy into new use cases, upgrade platforms in the field, and deliver seamless experience from edge to command centers. Now let's look at how the stack is deployed in our field. Proven drone systems physical AI stack is reflected in end-to-end platforms, and we have designed both Optimus System and Iron Drone Raider as modular, racked, and mission-ready platforms. These are not drones that just fly once a day or require operators to be on standby. These are autonomous infrastructure assets built for 24/7 ISR and counter-UAS operations.
Of course, both platforms are built to meet the most demanding operational requirements of military, homeland security, and public safety customers and are fully compliant, which is increasingly important in government procurement. Further, these platforms are intelligent, adaptable, and fully autonomous, and because we have expertise across the stack, we can scale and iterate faster and deliver more value to customers over time. This slide shows what the performance of our systems looks like in the real world deployed in mission-critical environments. On the left, you can see the Iron Drone Raider performing a live interception, autonomously identifying and neutralizing a hostile drone with zero human piloting. On the right, we share the Optimus System DFR network, whereby drone infrastructure is deployed through major urban cities for public safety missions. The KPIs show the value and performance of this critical use case.
As we s hown on the bottom right, we have now logged over eight years of autonomous flight operations across a range of environments including dense urban zones, sensitive infrastructure sites, and desert installations. These deployments are not trials, they're not POCs. They are active real world security and intelligence operations, and they are driving recurring business from our customers. The result is clear: autonomy isn't coming, it's here, and Ondas is leading the way by delivering operational performance, reliability, and scale that today's defense and public safety missions demand. Let's now take a closer look at the software stack that powers our autonomous platforms. Our systems build on a tightly integrated suite of applications that manage the entire mission lifecycle from autonomous flight to data processing and insight delivery. First, we have Insightful, our secure cloud and on-prem data portal. This is where raw sensor data is ingested, organized, visualized, and shared.
This includes orthophotos, 3D models, point clouds, and real time video, all processed automatically. Then there is Primus, our command and control software. The software manages autonomous flight operations, docking, payload handling, scheduling, and remote intervention when needed. Powering our autonomy layer is the Iron Drone Deepstream, our proprietary AI engine that enables object detection, classification, and path planning even in GPS-denied or RF-limited environments. We will highlight Deepstream in more detail in a moment. Together, these systems make our drone infrastructure intelligent, mission-adaptive, and highly scalable. Whether you are securing a base, inspecting a power plant, or intercepting an intruder drone, the entire workflow is automated, secure, and built for compliance in high security environments. This is the Insightful platform, our central hub for drone-collected data. It's more than just a repository.
Insightful is a fully featured geospatial intelligence platform that enables users to make sense of complex drone data in real time. Operators can view live video feeds from the UAV camera or explore historical missions from a secured video archive. The system supports 3D modeling, orthophotos, point clouds, and annotations with the ability to extract detailed measurements directly from the interface. Built-in tools allow teams to collaborate, tag, comment, and export insights to our systems. For enterprise and government customers, this portal becomes a mission command interface allowing multiple users to view assets and act on the drone intelligence from any locations. Insightful is fully secure, scalable, and ready to support recurring SaaS revenue as we grow our installed base of Optimus and Iron Drone radar systems.
As we continue discussing our software architecture, let's take a closer look at the Primus, the core command and control interface that powers autonomous operations across the Optimus drone fleet. Primus is engineered as a C4ISR enabling platform, providing users the tools of command and control, communicate, and coordinate autonomous aerial missions in real time. With integrated video feeds, mission planning, camera control, and fleet oversight, operators can manage multiple assets seamlessly through a single pane of glass. Accessible on both desktop and mobile tablets, Primus supports flexible operations across centralized command centers and forward deployed on field teams. Built with security at its core, Primus is VPN enabled and deployable on private air-gapped networks, ensuring operational resilience in limited or classified environments. Behind mission execution, Primus supports advanced video management, incident response coordination, and situational awareness overlays, making it a true tactical interface for multi-mission environments.
In short, Primus is more than an autonomy-enabled drone controller, it's a modular, scalable C4ISR interface designed to evolve alongside our platforms and meet the complex needs of defense, homeland security, and critical infrastructure operators. Now let's come back to the AI engine that gives Iron Drone radar its edge: the Iron Drone Deepstream. This is our proprietary computer vision-based flight control and threat classification engine, which enables the Iron Drone to detect, identify, track, and engage with hostile drones in real time, and everything is fully autonomous. The system includes high-frequency flight control algorithms for ultra-responsive maneuvering, AI object detection and tracking trained on large data sets of aerial threats, multimodal sensor fusion including EO and IR cameras, and micro radar embedded capabilities to operate in GPS-denied and high jamming environments where traditional systems usually fail.
What makes Iron Drone Deepstream special is that it's not just guiding the drone, it's making tactical decisions in real time under limited airspace conditions. This is a core differentiator that positions Iron Drone Raider as a leading counter-UAS platform capable of defending high value targets with unmet reliability and low collateral risk. Sticking with the Iron Drone Raider, we will take a closer look at the system and its capabilities. Iron Drone Raider is purpose built to intercept and neutralize hostile drones in real time, autonomously, safely, and persistently. Unlike traditional counter-UAS systems that rely on jamming or kinetic destruction, Iron Drone Raider uses low collateral net capture, which can be supported by parachute. This is especially important in dense and sensitive environments like military bases, airports, and other urban centers.
It's also modular and upgradable, enabling configuration of alternative mission types including kinetic payloads, loitering missions, and extended range interceptions. Simply, this is not just a drone. It's an integrated aerial defense system. It's being adopted by leading defense and homeland security organizations globally these days. The system is designed for 24/7 deployment with zero human piloting. It detects, tracks, and locks onto intruding drones, launches autonomously, intercepts the target, and then captures it mid air. Now let's take a look at the full radar architecture. The system starts with a fully automated drone pad, a docking station designed to house and recharge up to three interceptor drones in a ready to launch configuration. The docking system is built for speed and scale. Once a threat is detected, Iron Drone Raider will autonomously launch, track, and engage with no manual intervention.
Each interceptor is equipped with an AI powered onboard computer for autonomous flight, a high speed camera and sensor suite, a net launcher for safe interception, and a parachute recovery system that can be added and return an intercepted drone to the ground, further minimizing the collateral damage. What makes this system so powerful is that when the drone is chasing one threat, it's a multi-layered persistent aerial security system. It reduces cost per interception through drone reusability, speeds up threat response, and provides around the clock protection with zero human burden. We will now show a brief video of the Iron Drone Raider in action for the benefit of those who maybe didn't see this thing in the past.
It.
This slide illustrates the full mission flow of the Iron Drone Raider system from detection through capture and recovery. Just as you just saw in this video, the sequence begins when hostile drone is detected by integrated external sensor. This could be an earth detection radar or vision-based systems. Once a threat is identified, the command and control system activates autonomously. The Iron Drone interceptor is launched with predefined flight path and engages the target with no human piloting required. The onboard AI continually adjusts the drone trajectory in real time using its visual radar sensors. Even when there is no GPS available. Upon closing in, the drone deploys a capture net, capturing the intruder. A parachute system is automatically deployed to bring the captured drone safely to the ground while the interceptor drone is landing nearby.
This approach allows for non-destructive interception which is crucial in civil and sensitive military zones. The entire process from detection to recovery is completed in three minutes or less, offering a fully autonomous counter-UAS capability that's scalable, safe, and operationally proven. Now let's shift gears to the Optimus System, our fully autonomous drone-in-a-box system designed for persistent ISR and data delivery missions. Optimus is rugged and modular, built for Tier 1, enterprise, and government customers. Designed to operate 24/7 in complex environments, the system includes fully automated base station with integrated battery and payload swapping, climate control backup system, and high bandwidth communications. Each drone flight is autonomous from launch to landing. Optimus can be deployed for security patrols, threat detection, infrastructure inspection, and emergency response. With dual EO and IR sensors, LIDAR, and mapping payloads, the Optimus platform delivers rich actionable data faster and safer than many alternatives.
It's also NDAA compliant, which is critical for U.S. government and defense customers. Again, Optimus is more than a drone. It's an autonomous infrastructure solution for high stack operational environments. On this slide we feature a video that brings the Optimus System to life. You'll see complete mission cycle in action, from autonomous launch, real-time surveillance and flight routing to landing, battery and payload swapping, and data delivery. This is a demonstration of what's possible in the future. This is what Optimus is doing today. Every day in the field it is enabling critical infrastructure operators to monitor facilities remotely, giving public safety agencies new response capability, to helping defense and homeland security customers scale ISR without needing additional personnel. As you watch, keep in mind that every part of this workflow is automated, secure, and compliant.
This is what run infrastructure looks like when it's mature, ready to deploy, scale, deliver value every day. Let's play the video.
My name is Brian Grant. I'm the Director of Flight Operations here at American Robotics. Today we're going to be demonstrating the Optimus drone-in-a-box solution. This system can be deployed remotely, not co-located with any pilots or operators, and can be used to gather data for many different use cases. The Optimus System is enclosed in a solid steel box. This box creates a weatherproof environment for the systems inside, which allows the system to operate in extreme hot and/or cold environments. The Optimus System features a weather station outside the box. This weather station measures rain, wind speed, and temperature. These sensors give the remote operator the ability to understand the weather that the aircraft will be operating in. The weather station also houses several cameras.
These cameras give the ability for the operator to see what is going on around the aircraft and the box itself to make sure safe operations can occur. This is the Optimus aircraft. The aircraft weighs 26 pounds. It's roughly 4 ft in diameter, tip to tip. It is based off of a type certified aircraft, and it has the ability to deploy a parachute if needed. Our type certification is in conjunction with our Kestrel DAA system, allowing us the ability to apply for and be approved for beyond visual line of sight waivers from the FAA. What you see here is the aircraft has now been raised to the top of the station. It is now gathering GPS solution and running through its pre-flight checklist. Once the GPS and the pre-flight checklist are gone through and the solution is going good, the aircraft will deploy on its mission.
Upon completing the mission, the aircraft returns to base. As you can see, the aircraft is going to be hovering over the station and will descend. The lid will open up and the stage will rise. The aircraft will deploy a resting system and is winched down by the aircraft to a precise landing spot on the stage, which helps it land in adverse weather conditions. We see now that the aircraft is lowered inside the box and the robotic arm is taken off the payload. The payload is put onto a docking station, which can house up to nine different payloads. As an example, some of the payloads can be LiDAR, can be high-resolution cameras, or EO/IR sensors. The Optimus System is the only drone-in-a-box solution that offers the ability to swap payloads and immediately take off on another mission. The robotic arm also swaps the batteries.
It would remove the battery from the aircraft and put it on its charging station. There are 11 different charging stations, so we can have up to 11 different batteries that can be swapped to perform the daily operations. There is also a slot dedicated to discharging the battery, which maintains the state of health of the actual battery. The box incorporates an environmental control system. This system maintains a constant temperature inside the box regardless of the external climate. Now we're inside of our OCC, or our Operations Command Center. This is where our remote pilot or operators can oversee and monitor the system as it's performing its missions. Once the payload is actually placed in its docking station inside the box, that's when the data transfer happens. The data is uploaded to a system called Insightful. From there, any stakeholders can access the data.
Let's dive into the versatility of the Optimus System and the wide range of mission use cases it supports. At its core, Optimus is a modular payload diagnostic system designed for nonstop operations across multiple sectors. The platform supports dual EO/IR video for perimeter security, threat detection, and DFR, drone as a first responder missions, 2D/3D modeling using a full-frame sensor for risk assessment, construction monitoring and planning, LiDAR for volumetric measurements and environmental modeling offering sub-centimeter accuracy, aerial delivery capabilities for logistics, maintenance tools, or emergency supplies. The mission flow is fully autonomous. The user requests a mission and selects the payload. The drone autonomously launches and flies on a preplanned route. It transmits live data and captures the necessary intelligence. Upon return, it automatically lands, swaps battery and payload, and offloads the data. The processed outputs are delivered via the Insightful portal.
This end-to-end capability enables true unattended operation with swappable payloads designed to support diverse high-value use cases in both governmental and commercial markets. One of the most powerful advantages of the Optimus is how it scales. Each Optimus base station can autonomously cover an area of up to 30 sq mi, providing persistent ISR, security, and emergency response capabilities. These stations can be networked together, enabling regional, national, or even international grids of autonomous drone infrastructure. This creates a mesh of airspace awareness and intelligence ideal for border monitoring, utility inspection, smart city applications, and disaster response. For example, in a major metropolitan area, you could position several Optimus stations as key infrastructure nodes, power stations, transit hubs, ports, and have real-time autonomous surveillance feeding into the central operational center.
This is how we think about drone as a sensor infrastructure: fully automated, real-time, multi-site coverage that delivers continuous operational value. As you will see later in this presentation, this model positions Optimus for scalable revenue growth as customers build out their own autonomous drone networks. I will hand the call now to Tim Tenne, American Robotics CEO, who will discuss Kestrel, an important new platform in our portfolio. Tim,
thank you, Eitan. Let's turn to airspace security and traffic management and our Kestrel system, which is critical to enabling scalable beyond visual line of sight drone operations. Kestrel is Ondas's integrated detect and avoid and airspace awareness platform. Kestrel provides the foundational layer for true autonomy. It enables drones like Optimus and Iron Drone Raider to operate safely, persistently, and without visual observers in full compliance with evolving FAA and NATO airspace regulations. The system leverages active radar and passive sensors to detect, track, and assess all cooperative and non-cooperative aerial traffic in the area. At its core, Kestrel is a full spectrum universal traffic management solution that delivers real-time airspace deconfliction, collision avoidance, and air risk mitigation. We also offer Kestrel as a standalone system where we see demand for counter-UAS airspace awareness from many customers.
A few weeks back, we announced that a major police department in Florida has purchased a system for that very purpose. Let me walk you through what makes Kestrel so powerful. It supports autonomous airspace mitigation when fully integrated, can deconflict drones and manned aircraft in accordance with regulatory requirements without human intervention. It interfaces and fuses multi-source real-time data to calculate both air and ground risks, which unlocks autonomous missions at scale. This system simultaneously tracks a multitude of air and ground targets up to 15 km in range using passive, cooperative, and non-cooperative sensors. It includes perimeter and ground surveillance capabilities, tracking vehicles and people over 5 - 6 mi. As mentioned earlier, Kestrel also supports a counter-UAS function, adding another layer to our Iron Drone Raider deployments. All of this makes Kestrel a next-generation air traffic management solution built for the autonomy era.
It is a critical component of our broader drone infrastructure strategy and is already being deployed alongside Optimus to enable BVLOS flight and complex high-risk environments. This slide brings it all together: the complete OAS autonomous ecosystem. At the center is the Optimus System, providing 24/7 aerial intelligence and security. Supporting Optimus is Kestrel, delivering the airspace management and DAA infrastructure needed to operate safely under regulatory frameworks like pending FAA Part 108. Overseeing it all is the Operational Control Center, a remote real-time control room that allows a single operator to manage multiple Optimus Systems across regions and missions from anywhere in the world. This is what true autonomy looks like. One remote pilot in the loop managing multiple drones, no visual observers or on-site personnel necessary. Flight over non-participating people and moving vehicles anywhere, anytime.
A professional aviation center that is secure, compliant, and intelligent aerial infrastructure delivering mission-critical data and protection around the clock. We have also reprioritized the process of Green UAS certification, which will further position Optimus for adoption across defense and public safety use cases in the United States. We do expect to complete this within 2025. This architecture, fully integrated, modular, and compliant, is a key driver of our competitive advantage and growth trajectory in 2025 and beyond. I will now hand the call to Meir Kliner, Airobotics Chief Executive Officer. Off to you Meir.
Thank you Tim. It's nice to be with all of you today. Let's shift focus on our product development roadmap and what is next on our platforms. The headline is simple. We are not starting from scratch. We are not investing in speculative new platforms. Instead, we are laser focused on scaling existing systems. We are extending their capabilities and responding directly to customer requirements. We can't share everything for competitive reasons, but we want you to see the progress we are making and the goals behind our platform expansion. Two key initiatives we would like to highlight. Firstly, Project X, which is focused on expanding I want one capabilities to include new mission types, especially in loitering, munition, defense, and high mobility ground deployments. This will increase relevance in fast evolving battlefield environments.
Project Z is tailoring the Optimus System for external network deployments that introduces a lower cost and lower power variant for broader rollout in urban and remote geographies. Both initiatives leverage our modern platform design and field proven architecture, allowing for faster time to field and limited development risk. Our goal is to expand time and deepen customer stickiness without taking on greenfield platform technology development risk. We are investing where customer demand is clear, urgent, and profitable. I will have more to share with you later regarding our customer and marketing activities, but will now hand it back to Eric to introduce our go to market and operating plans. Eric.
Thank you, Meir. Now let's talk about our go to market strategy and how we're bringing these platforms to market and executing at scale. As you're hearing today, the technology is real, the markets are ready, and the regulatory tailwinds are strong. None of that matters unless we can reach customers, capture programs, and deliver operational results. Our go to market strategy is designed to do just that. It's focused, layered, and built for capital efficiency. Over the next few slides, we'll walk through how we are prioritizing the right markets at the right time, sequencing product adoption in line with customer and regulatory readiness, leveraging partnerships to accelerate reach and reduce overhead, and building the scalable operating platform that supports repeatable growth.
This is not just a sales plan, it's a full funnel, end to end approach to capturing and expanding long term programs and driving sustained value across global defense, security, and infrastructure markets. Everything we do at Ondas will be anchored in our commitment to scalable growth. This slide reflects the operating foundation we've been building to support that growth efficiently, strategically, and with global reach. Our model is built around several key elements. First, we're targeting multi year customer programs in defense, homeland security, and infrastructure programs that offer recurring revenue and expansion opportunity. Second, we're deploying dual use platforms that can serve both military and commercial markets, allowing for efficient resource utilization across a larger opportunity set. Thirdly, we're investing in our internal leadership while simultaneously expanding through partnerships, especially for integration, distribution, and field services.
Finally, we are localizing execution in major theaters: the United States, Europe, and the Middle East, with physical presence, regulatory alignment, and customer support. This platform allows us to scale faster, serve customers better, and maximize return on deployed operating capital. The long term winners in this market will not be just those with the best products, they will be the ones who can execute at scale. That's the platform we're building, and we're confident it gives us a lasting strategic advantage. I'm going to now turn the call back to Eitan, who will outline the markets we are addressing in our marketing strategies. Eitan.
Thank you, Eric. Let's now map our two core platforms, Optimus and Iron Drone Raider, against these market phases. In phase one, those platforms are already active. Iron Drone is deployed for military base protection, border defense, and critical government site security. Optimus is being used in drone-as-a-first-responder programs and public safety ISR missions. In phase two, both platforms will expand into infrastructure protection, airports, ports, utilities, oil and gas facilities, and semiconductor fabs. These customers need persistent aerial surveillance and C-UAS protection, which both platforms provide. Phase three unlocks broader adoption. Optimus will deploy for construction, insurance, and industrial inspections. Iron Drone will begin to enter large event security, stadiums, and smart city public safety environments. Our GTM metrics ensure cross-platform value and open the door for customers to expand with us whether they start with Iron Drone, Optimus, or both.
The total addressable market for both Optimus and Iron Drone Raider is massive and accelerating. Let's start with Optimus. The drone-in-a-box market is projected to grow from $1.5 billion in 2025 to more than $3.5 billion by 2030, according to Fortune Business Insights. This growth is fueled by increased demand for remote perimeter security, first responders, as well as industrial inspection and smart infrastructure. These are not speculative markets. They are validated by urgent need, policy tailwinds, and growing customer budgets. Meanwhile, the TAM of Iron Drone Raider is also large and now growing very rapidly. The counter-UAS market is already valued at approximately $3 billion today and expected to reach over $10 billion by 2030, according to Grand View Research. This market is being driven by rising global drone threats, regulatory support for counter-drone adoption, and defense and public safety investment worldwide.
We believe Ondas is positioned to capture a leadership position in both drone-in-a-box and counter-drone markets. Let's drill down into specific addressable markets and relevant use cases for Iron Drone Raider. First, the counter-UAS value chain is multi-layered and includes detection systems like radar, RF sensors, and cameras in addition to interdiction systems, which can range from jamming and spoofing to physical engagement. Iron Drone sits in that interceptor layer, but what makes it special is that it offers low collateral and it's a reusable autonomous alternative to traditional kinetic or electronic warfare systems. In this way, it's built for purpose for populated areas as well as bases and borders. Our immediate focus with Iron Drone is on military and homeland security missions protecting bases, borders, and national assets.
These customers are actively buying and deploying solutions, and our pipeline is very large and customer and partner engagement is growing rapidly. With that said, we believe that non-military markets like public safety, critical infrastructure, and event security are likely even larger and currently unserved. Today, deployment outside of military use cases is limited by regulatory constraints, but that is changing quickly. With the Trump executive orders and rising interest from public safety agencies like NYPD and others, we expect commercial COAS adoption to accelerate much faster than previously modeled. This presents a unique opportunity for Iron Drone Raider to become the category-defining COAS platform across both defense and civilian markets. Here we present our bottom-up total market sizing for Iron Drone Raider in defense and homeland security applications.
Based on internal estimations, we see an immediate, serviceable, and valuable market, what we call SAM, for over $2.1 billion across four core military and security use cases. Military bases, we estimate deployment potential across at least 20% of 491 relevant bases globally with 2.5 systems per base. Combat vehicles protection for more mobile assets using a 1:20 system-to-vehicle ratio across 118,000 vehicles. Naval vessels, 1 system per ship on approximately 30% of 22,800 vessels. National border counter-UAS system deployed every 5 km along critical segments representing 5% of 22,000 km of borderlines. Importantly, this pie chart on the left does not include non-military markets, which are significant and expanding quickly. As we just mentioned, places like airports, stadiums, data centers, refineries, and large government facilities all face the same threat landscape, and Iron Drone Raider provides a safe, autonomous, and NDAA-compliant defense solution.
Recent executive orders and agency activity point to accelerated adoption in public safety and critical infrastructure. We look forward to updating you on these markets later this year. Now turning to Optimus, which we show SAM here for military and HLS next to the Iron Drone calculation for those military and HLS use cases. Our estimations show $3.2 billion serviceable available market, what we call SAM for Optimus. These numbers reflect global demand, scalable ISR and aerial security solutions across multiple segments: border protection, military bases, and critical HLS facilities. These deployments represent both initial entry points and long-term expansion opportunities. Importantly, these SAM numbers are only for defense and only security. The commercial opportunity includes oil and gas, power, airports, and smart cities, is even larger, will be addressed through a phased go-to-market model.
Together, Iron Drone and Optimus represent $5.3 billion combined SAM, with both platforms positioned for early sustained leadership. Let's now combine the two platforms and map out the market penetration. We're targeting the table at the top shows across allied nations, including U.S., NATO members, and regional security partners. We estimated a combination of SAM of $5.3 billion. We access this market via G2G opportunity as well as with partners like Mistral and other and direct marketing. From that, we have defined near-term serviceable obtainable market, or SOM, of $1.4 billion: $600 million for Iron Drone Raider, $800 million for Optimus. Again, this is across allied nations only. To drill down into actively with our major military customer in the Middle East, we continue to target $120 million in SOM in the short term, with what we believe is very significant long-term upside behind that. These are not theoretical opportunities.
This sum is built from active customer engagement, including opportunities that exit via programs of record with military and homeland security agencies, government-to-government sales pipeline, partnership with major defense integrators. We have already booked $30 million in orders since the second half of 2024, including major $14.3 million expansion order in June 2025. The foundation is laid. Now it's about executing, expanding, and replicating these programs across geographies and sectors. Remember, the drone as an infrastructure build-out cycle is really just the beginning across these major markets and across the world. Our marketing strategy is multi-pronged, operationally aligned, and built for scale. We focus on three core channels to capture the growth and high-value programs. First is the government-to-government, G2G, leveraging existing customer networks and bilateral relationships to drive defense and homeland security.
Sales channel-led partnerships utilizing agents, defense primes, and integration partners to expand reach in new geographies and verticals. Direct engagement, participating in strategic expos, live demonstrations, and digital campaigns to attract inbound interest and build brand authority. Our marketing engine is tightly aligned with the sales, product, and regulatory teams, ensuring that each customer iteration translates into long-term opportunity. Importantly, we prioritize program capture over single unit sales. Once we win a program, we expand it across sites, mission sets, and years, creating repeatable business and revenue streams. I will hand the call now to Meir Kliner, who will share some of the details of the Iron Drone Raider marketing and the expanding partnership strategy we are pursuing.
Thank you, Eitan. I would run Raider War 2. This is a global demo campaign designed to showcase Raider's unmatched autonomous counter-UAS capabilities, build trust through live high-impact demonstrations, and engage directly with top-tier defense and public safety stakeholders. These events are accelerators. They have already led to two new Iron Drone Raider customers in Q2 2025, with additional customers and orders in motion. Iron Drone Raider's low collateral, reusable design gives it a unique value proposition for sustained, high-frequency operations, and with the counter-UAS market projected to reach over $10 billion by 2030, this tool positions us as a first mover and category leader in autonomous drone interception. Most stops are planned in the U.S. and Europe over the coming months. Each one is designed to convert pipeline into programs and programs into expansion. As we have highlighted, partnerships are key to helping us grow.
We are building a localized global ecosystem that accelerates our ability to sell, deploy, and support our platform across key regions. This includes sales and marketing partners who help us across difficult-to-reach customer segments, field service and sustainment providers who ensure long-term operational readiness, and service delivery integration partners who align our system with existing command and control infrastructure. Our goal is to be globally present and locally enabled with the speed, flexibility, and trust that customers require. We are just getting started. We have established new strategic relationships in the U.S., Europe, and the Middle East. Some of the names and logos you see here haven't been officially announced yet. We will share more details about them as soon as we can. These partners will help us scale faster while preserving capital efficiency, which is a critical element in our growth model.
I will now hand the floor to Tim to highlight recent developments at American Robotics as we prepare for strong growth in the U.S. market. Tim?
Thank you, Meir. We are making rapid progress in building out our operating footprint in the United States. One of the most important pieces of that footprint is domestic manufacturing, and that's where our partnership with Detroit Manufacturing Systems and their state-of-the-art subsidiary Kinetic comes in. Through this relationship, we've established an NDA-compliant, Michigan-based manufacturing platform to support Optimus, Iron Drone Raider, and future products. This partnership gives us U.S.-based, NDA-compliant production critical for defense and public sector customers, opportunity for reduced unit costs through scale and design for manufacturing, shorter delivery timelines, and improved supply chain resilience. This is a strategic differentiator for Ondas. It ensures we can meet the needs of customers who prioritize Made in America solutions. It positions us to move rapidly when large federal programs come online. DMS is more than a vendor. They're a strategic enabler of our scale-up plan in the United States. Next slide.
There we go. Thank you, Meir. There's a lot of activity at American Robotics, and a bit later we'll discuss the customer pipeline. Another key partner we've mentioned earlier and we're excited to highlight is Mistral. A proven leader in U.S. government sales and contracting, Mistral has over 30 years of experience supporting defense, homeland security, and public safety agencies. They bring the relationships, contracting know-how, and credibility that can accelerate Ondas' penetration of federal markets. We are working closely with Mistral to identify near-term opportunities within DoD, DHS, and public safety customers with a goal to capture our first major federal U.S. order in 2025. Combined with our internal resources at American Robotics, this partnership gives us a scalable, high-credibility presence in the largest defense and security market in the world. I will now hand the call back to Eric, where he will discuss our financial outlook. Eric?
Thank you, Tim. I want to also say thank you to Meir, Eitan, and actually want to especially highlight Eitan, who's carried a significant part of the day so far. Of course, we do have more to share. Now we've covered the platforms, the markets, and the go to market strategy. Let's talk about what all that means from a financial perspective. At Ondas, we believe the companies that win in this market will do so not just because they have great products, but because they build and execute upon a disciplined, scalable financial model. That financial model must prioritize capital efficiency, deliver strong gross margins and operating leverage through scaled service delivery, support repeatable growth through expansion of programs, and ultimately lead to sustainable profitability and free cash flow generation.
Over the next several slides, we'll talk through how we're building that model from unit economics and production scalability to revenue forecasts and capital planning. Our goal is to show you how Ondas and Ondas Autonomous Systems, more specifically, is not just a defense and security technology company, but a high growth operating company with the financial discipline to create long term value for our shareholders. The foundation of our financial model is our multi-year customer program strategy. This is a strategy built around capturing, expanding, and sustaining grown infrastructure buildouts. This gives us high revenue visibility with repeatable ARR type revenue and allows for the ability to reinvest in growth with discipline. We are focused on maintaining strong unit economics supported by pricing power for differentiated capabilities, economies of scale through production and supply chain optimization, and capital light partnerships for go to market support.
Our operating platform is built to drive leverage over time, meaning that as revenue grows, we believe operating margins will expand and capital efficiency will improve. The winning defense and security tech companies will be those that can combine deep technology with an efficient operating model, which we are building. Our investors have seen our go to market investment plan evolve over three distinct phases. Through 2024, that focus was on building the platforms, developing our technology, and validating product market fit, improving our capabilities in the field. Over the last couple of years we have advanced our service delivery capabilities, focused on scaling operations, activating partnerships, and executing programs across our target markets. We are focused on vertical specific solutions and on building the scalable infrastructure that supports repeatable growth.
As we scale our operating platform, we envision an expansion flywheel by 2027 which can sustain, support, and support high growth with internally generated funding. Again, this is a long term capital efficient growth strategy and I am happy to say that we're already seeing early stages of phase three begin to take shape today. With that said, I'm going to hand the call to Oshri Lugassy to share details on our customer and program capture pipeline and also ask Tim Tenne to weigh in on the progress American Robotics is making in the United States and then Neil Laird, our CFO, is going to share some specifics on our financial model. Oshri, I'm going to hand the floor to you.
Thank you, Eric. Let's look at our customer pipeline, but before we do that I want to highlight Ondas' marketing strategies. We are focused on capturing and expanding programs. In other words, we are not necessarily optimizing for the size of the customer's pipeline. That means we are targeting customers who can move the fastest towards multi-infrastructure deployments, knowing that these customers take dedicated resources for closing deals and delivering the systems. A focus on capturing and developing these programs results in long-term revenue visibility. We need to scale our service delivery capabilities in concert with pipeline growth, and we are doing that. With that said, we are tracking a quite large global customer pipeline. This pipeline is at least $430 million across our Optimus System and Iron Drone Raider platforms.
The majority of this opportunity currently sits outside the U.S., reflecting strong traction in the Middle East, Europe, and Asia. The U.S. pipeline is growing rapidly, and I expect that to continue, especially with the support of Mistral and our expanding domestic partnerships. Tim will share more on this activity with Mistral. He will also share the traction with Optimus System with public safety agencies, utilities, and infrastructure operators. Of course, Iron Drone Raider is being actively evaluated by the DoD, DHS, and NATO-aligned militaries. Several customers are already in the buying phase, and as we close more programs, we expect this pipeline to both mature and expand over the next 12 months. Program expansion opportunities: Since Q3 2024, we have received over $39 million in total purchase orders, including two new Iron Drone Raider customers secured in Q2 2025 alone. One of these was a NATO member military customer.
We deployed the Iron Drone Raider at a major international airport in Europe. This order had an urgent deployment requirement. That system is already operational as of June and is now securing the critical airspace today. The other customer announced in Q2 is a major governmental homeland security agency. They are running a pilot project expected to be completed in Q3. These new HLS customers were secured through government-to-government channels. This will bring additional similar opportunities. These new Iron Drone Raider customers are not one-off sales. We believe they will both convert into multi-year infrastructure programs. The expansion budgets are already being discussed, and the activity doesn't stop. We are advancing multiple new military and public safety agency engagements across the U.S., Europe, Middle East, and Asia. The takeaway here is clear: our installed base is growing, our execution is accelerating, and our customer relationships are deepening.
Tim, I will now hand the floor to you and your team.
Thank you, Oshri. As previewed, American Robotics is gaining traction in the large U.S. markets with pipeline momentum accelerating across public safety, infrastructure, and industrial sectors where we are seeing strong demand for the Optimus drone-in-a-box capabilities. Selected key developments include a new order in Q2 from a major Mid-Atlantic water utility, validating our partnership with E2E Saragon, where we see much more potential. We also see a significant pipeline opportunity with a major U.S. city in the Northeast focused on DFR and critical infrastructure security. As an aside, I would like to highlight the picture. To the right is our Optimus UAV flying high above Central Park, where we spent the month of February in a successful pilot project. I also highlight interest from a Fortune 100 customer for Optimus deployment to secure large campus-like facilities. Lastly, we also anticipate an initial deployment of Optimus at a major U.S.
military base as soon as this quarter, which is an important strategic win. We hope to share more details on that later this year. In parallel, we're focused on securing Green UAS certification, which will position us for broader public safety and defense adoption in the United States. Of course, I believe the Mistral partnership will be highly impactful, and again, our goal is to secure our first U.S. federal order by the end of this year. With Detroit Manufacturing Systems now producing systems, we have the supply chain in place to support a growing order book through 2026 and beyond. I will hand the call to our CFO, Neil Laird. Neil?
Thank you, Tim. Let's turn to some details about our financial model. The graphic you see here illustrates how our revenue scales as we capture and expand programs, what we call the infrastructure program Flywheel. We begin by capturing a program with up to a handful of systems or locations. Once deployed and operational, our customers generally intend to expand the infrastructure build out, adding more systems, more sites, and deeper integration. That expansion leads to system placements as well as additional services including training, field support, and mission specific upgrades. The Flywheel effect takes over. What starts as a small order of up to a few million dollars grows into a multi-year, high margin engagement with growing and repeatable revenue and long-term visibility. Importantly, our operating platform is being built to support this growth. The more we scale, the more efficient we become on both revenue and the cost side.
While this model is powerful on its own, it's further amplified when we layer in strategic M&A and broader platform integration, which we'll get to shortly. This is the blueprint for building a high growth, high margin, and highly valuable defense and security company. Now let's talk about the unit economics and financial profile that support this growth trajectory. At scale, we're targeting gross margins of around 50% for Optimus and 70% for Iron Drone Raider. Why the difference? Iron Drone has a simpler architecture, fewer payload variations, and strong pricing power. As a low collateral counter-UAS solution, Optimus has a higher price point reflecting both the ruggedness and complexity of the system, its persistent availability, and the vast number of use cases and environments it has relevance. We believe both systems will benefit from improving unit production, scale economies, and planned design for manufacturing programs.
On the operating expense side, we're maintaining discipline and leveraging strategic partnerships to capture and deliver for customers. We're also leveraging partners like Clear to support working capital and accelerate our cash conversion cycle, helping us to scale faster without excessive equity dilution. We reiterate our goal for positive EBITDA in the second half of 2026 with scalable growth thereafter. The bottom line is this is a disciplined, margin-focused operating model designed to deliver profitability by late 2026 and generate meaningful cash flow. Beyond that, I will now hand the call back to Eric to discuss our financial outlook.
Thank you Neil. Now turning to our revenue outlook, here's how we're thinking about the next 18 months. For 2025 we continue to guide to $25 million in consolidated revenue with at least $20 million coming from OAS. Looking ahead to 2026, we expect to double revenue to at least $40 million, supported by program expansion from existing customers, new wins in U.S. Federal markets, and continued momentum in Europe and the Middle East. We believe these forecasts, including 2025, remain conservative. They are based only on known opportunities and active engagements and supported by a growing backlog, which we expect to sustain through the end of 2025. Importantly, we are not yet modeling in these near-term revenue outlooks upside from major DoD wins, full-scale NATO deployments, or additional G2G programs still in development. This gives us multiple layers of upside optionality while maintaining near-term visibility and execution confidence.
Let's look at our capital requirements and how we're funding growth. For the second half of 2025, we expect to deploy $7 million - $8 million in growth capital to support order fulfillment, field services, and manufacturing scale up. For 2026, we expect capital needs of $14 million - $15 million, primarily tied to working capital. In supporting our path to profitability, we will look to leverage our partnership with Clear for non-dilutive working capital financing to further improve capital efficiency. In short, we have a clear path to profitability and self-funding. We believe our current resources, including the $67 million of cash at Ondas Holdings held at the end of June, is more than sufficient to fund our growth plan. We are well capitalized with minimal debt overhang and in our position to fund both organic growth and early-stage M&A without overreliance on the capital markets.
This is a healthy, scalable, and investor-friendly capital plan. Let's zoom out and look at where all this leads to. By the second half of 2026, we expect to reach EBITDA positive with revenue of at least $40 million. From there, we see a flywheel effect taking hold, driven by platform expansion, repeatable customer growth, and operating leverage. By 2030, we believe OAS can generate $140 million - $150 million in revenue with $40 million - $45 million in EBITDA. These numbers reflect the core business alone without factoring in strategic M&A. That's a 3--4 times growth in revenue and significant margin expansion, which is highly achievable based on current customer demand, platform readiness, and is also supported by strong end market growth. We view these numbers as conservative and believe the actual opportunity is larger, especially as policy tailwinds, regulatory progress, and capital investment accelerate adoption globally.
This is our base case, and it represents a compelling financial outcome and what we believe is a generational market opportunity. Now let's turn to the strategic growth opportunity we see through our programmatic M&A efforts. Everything we've discussed so far—our technology platforms, go-to-market strategy, and financial model—is designed to scale organically. We also see a unique opportunity to accelerate that growth through strategic acquisitions, which can leverage the same operating infrastructure we are building. Our approach to M&A is programmatic, not opportunistic. We're building a pipeline of high-quality targets that we will describe in a moment. In short, the purpose of our M&A program is simple. We want to fuel our operational flywheel and accelerate the availability of critical defense and security capabilities for our customers. Most importantly, deliver enhanced returns for investors above and beyond our core growth plan. Here's how we are executing on that strategy.
We're targeting companies that have mature, customer-validated technology that has been commercially de-risked. These are not early-stage technology plays. They are proven systems and capabilities with existing backlog and revenue streams. Our M&A strategy will accelerate our time to market, deepen our capabilities, expand global operations, and improve capital efficiency, which we will do through shared infrastructure and supply chain leverage. With each acquisition, we will ask: does this make our core platform stronger for customers? Does it improve customer experience? Does it expand our TAMs in obtainable markets, and does it create meaningful shareholder value in both the short and long term? If the answer is yes, we move forward with discipline, structure, and the support of a robust internal corporate development process. We do this because we believe the potential rewards are substantial. This slide captures the core philosophy behind everything we're building.
The market opportunity is massive with TAMs in the tens of billions of dollars across defense, public safety, and infrastructure. The growth cycle is just beginning. The S curve of adoption is launching now, and customers are looking for trusted, scaled providers. Meanwhile, most competitors are small, undercapitalized, and with single platform capabilities. They have narrower revenue streams. Ondas is positioned differently. We have defense and security platforms that are scalable. Today, we have the partnerships and ecosystem in motion, and we have the strategy to lead. We also have the financial model. We are designing Ondas to be the operating company that investors, partners, and most importantly, customers can rely on. Our opportunity is to build the platform of record to deliver solutions at scale across global markets with high returns on capital. This is a moment to lead, and we believe we are ready.
One of the core insights driving our strategy is this: the defense and security sectors are fragmented, undercapitalized, and characterized by subscale companies. There are hundreds, thousands of firms with strong technology but no path to scale. They can't build global distribution or field services, and they struggle with supply chain and manufacturing capacity. They often have significant financial pressures. This poses a real challenge for customers who are tasked with securing nations, borders, cities, and critical infrastructure. What they need is a scale provider of autonomous systems, a company that can deliver repeatable, compliant solutions across geographies. That's what we're building. The valley of death is the gap between technology development and commercial scale in our space. With most autonomy companies, they're engineering-led, single platform ventures with limited revenue streams. They're stuck in R&D and endless pilot cycles. They're reliant on venture capital to survive.
Many of them, after substantial efforts, have built valuable technology platforms but have no scalable path to market and no operating model to support growth. Ondas is crossing that valley, and we're doing it with purpose. We built the platforms and are now executing on that repeatable, capital-efficient growth model. The transition is hard, and that's why few companies will make it. Ondas is presenting a win-win model that can reward the target investors along with our shareholders. We believe this plan, supported by our public market investors, positions Ondas to be in a unique position to be the consolidator and clear market leader in autonomous drone systems and aerial intelligence. With additional complementary capabilities to support our M&A strategy, we built a highly capable Corporate Development team. This team brings together deep expertise in defense technology, government procurement, strategic finance, and more.
Key members include myself, who is overseeing strategy and board and investor alignment, Oshri Lugassy, who's leveraging his operational expertise in Israeli market leadership, Ron Stern advising on deal execution and investment structure, Neil Laird driving financial modeling and capital planning, and lastly Roni Kanelbaum, who I want to highlight briefly. Roni is leading M&A program management. She is our process and deal quarterback and brings tremendous defense technology and military expertise as well as financial and related investment experience. Of course, in addition to this team, we're supported by the broader leadership teams across Airobotics and American Robotics, and their technical and market knowledge are an invaluable advantage for us versus financial investors. We are maintaining a structured, disciplined approach that includes sourcing and qualification, diligence and investment committee review, board-level governance, integration planning, and post-close value realization.
This is a repeatable, scalable M&A engine, and I believe you will be impressed by the actionable opportunities we have in front of us. In a moment, I'm going to ask Roni, our Corporate Development quarterback, to run through some important messages about our strategic plan. First, I want to briefly highlight our plans to assemble a high-impact Advisory Board to further strengthen our execution. This board will support strategic growth initiatives, product and technology roadmap alignment, government relations, and procurement strategy. The Advisory Board will be active and engaged, serving as a strategic force multiplier across our businesses. This is an impressive group representing a strong coalition which is building to support Ondas, American Robotics, and Airobotics across the world, and we look forward to sharing more details on this impactful strategy over the next few months. Roni, I'm going to now hand the call to you.
Thank you, Eric. It's a pleasure to join the investor call today. As Eric shared, I'm the Vice President of Corporate Development at Ondas Autonomous Systems. As a way of background, I have two decades of experience in the defense sector with a technology and strategic focus. I have also spent time in the investment side of the table in venture and PE settings. I'm excited to join the Ondas team and believe that we will add significant value via the strategic growth of initiatives we are sharing with you today. How do we go from where we are today to build a high-growth leading provider of autonomous defense and security capabilities globally? It starts with building the full operating platform, not just great products but the infrastructure to deploy them at scale.
This includes sales and marketing, supply chain and production, field services and sustainment, finance and administration, and of course legal, regulatory, and government affairs. Our customers, ranging from defense ministries to HLS and first responders, need more than innovation. They need trusted, responsive partners who can deliver consistent results. By continuing to scale this operational foundation, we position Ondas to deliver mission-critical autonomy at global scale and to do so in a way that rewards capital providers with exceptional returns. Let's talk about the target pipeline and deal flow. Our team has cataloged over 300 potential acquisition targets across the U.S., Israel, and Europe. Of those, we have actively engaged in the last quarter with 25 companies, and we currently have active diligence activity with four potential targets.
These targets fall under five categories, which we outline in the next slide, including multi-domain ISR and counter-drone capabilities, integrated data and AI solutions such as mission control, analytics and C2, field services and sustainment providers to scale operational support, proven Israeli defense tech with export potential and field validation. We are not looking for speculative R&D initiatives. We are focused on mature, customer-validated platforms with real revenue and growth potential. Finally, here are the criteria we use to qualify and prioritize acquisition targets. Operating criteria we are prioritizing are strong leadership and technical teams, proven platform or service with operational traction, visible revenue ramp and customer stickiness, and alignment with defense, security, or critical infrastructure markets.
Important financial criteria include revenue in the range of $5 million up to $20 million, at least 50% of next 12 months revenue already booked, projected at least 50% year- over- year growth, and clear path to EBITDA profitability. Each acquisition must be accretive operationally, but also financially and strategically. This is critical to us. We are looking for companies that will accelerate our growth at the scale of our platform, enhance capital efficiency, and drive shareholder value right out of the gates. Our bar is high, but the opportunity set is strong, and I want to highlight that we are actively engaged with a short list of priority transactions today. I will now turn the call back over to you, Eric.
Thank you, Roni. Well done. Now let's look at the targeted financial outcomes from our combined Core Growth Plan and Strategic M&A strategy. By the end of 2026, our goal is to reach $100 million annual revenue on a run rate basis. This will be driven by core business momentum across Optimus and Iron Drone Raider program, expansion with existing customers, and initial contributions from the acquired companies. We will bring Ondas to $1 billion by 2030 with continued execution on both fronts. We target revenue of $300 million or more. On the margin side, we expect to reach $90 million in EBITDA by 2030, targeting 30% EBITDA margins through a combination of product margin discipline, operating leverage from our scaled and shared operating platform, and the strategic use of capital across integrated entities.
This financial model supports substantial value creation, and we believe we have the operational and strategic roadmap to achieve it. The goal is not just to grow, it's to build a scaled, profitable, and sustainable technology leader in the global defense, security, and intelligence markets. Now let's talk about the 5x goal and what all this means for our investors. Today, Ondas trades with a market cap of approximately $350 million. Based on our roadmap, organic growth program, captured operational scale, and selective M&A, we believe we can build a company valued at $2 billion or more within the next three years. That's a five times increase in our market capitalization, which would be driven by strong and ongoing revenue growth, operating margin expansion, improved capital efficiency, and strategic positioning in a generational market cycle. This isn't just a vision, it's a targeted execution plan.
Further, this is not just about market cap growth. We believe we can execute this core plus strategic growth plan to create substantial upside for our investors, reflected in a much higher stock price. Our conviction is high, and we believe we have the team and roadmap to deliver these outcomes, and we will be focused on working to achieve these targets. Let me summarize. Ondas plans to build the most complete, scalable, and investor-aligned platform in the emerging autonomy-driven defense and security industry. We've transitioned from R&D to commercial scale. We've validated our platforms in the field. We've secured reference customers in defense, homeland security, public safety, and critical infrastructure. Our regulatory and policy tailwinds are strong. Our capital position is healthy, and our financial model is built to scale efficiently. Add to that a growing M&A engine and an advisory coalition.
We believe Ondas is uniquely positioned to lead this market as it enters a hyper-growth phase. We're excited about the journey ahead, and we thank you for your continued support and partnership. With that, we'll now open it to Q&A, operator.
We will now begin the question and answer session. To ask a question by phone, please click the link or dial the numbers that appear on screen. Once connected, please press star then one on your telephone keypad. To withdraw your question, please press star then two. If you are using a speakerphone, please pick up your handset before pressing the keys. At this time, we will pause momentarily to assemble our roster. The first question comes from Glenn Mattson with Ladenburg Thalmann. Please go ahead.
Yeah, hi. Thanks for this presentation today and the detailed roadmap that you laid out. Question first on the M&A opportunity, can you just talk about there's a lot of money chasing the space right now.
Could you talk about maybe the, just the competition that you're seeing for the deals that you're going after and you know, just the what kind of green space is there versus other people trying to go after the same type targets?
Yeah, sure, Glenn, thanks for the question. It's a good one and an important one. We are seeing a significant surge in i nvestment in our sector. However, I don't think that investment is directed towards consolidation. I think while a lot of people have a vision around M & A and really the requirement, an imperative f or us to build scale in our industry, in practice it's very difficult. If you're a venture backed, for example, you want to do this strategy. It's a bigger challenge, right? It's because the investment you're making is n ot just in operating capital.
It's also in the acquisition capital, as I call it. Your cost of capital is very important. I think we have a unique position where we're backed, again, by supportive investors. I believe that 100%. I think we're going to have a very strong currency to execute this plan. I think that's unique. You're right. There's a ton of investment coming into our sector, but the M&A s trategy is not easy. I also say, and I made this point on the call, I think w e have a huge advantage. We have technical and market expertise that f inancial investors don't have. I think many people are going to make the choice to back us because we can execute a strong plan.
Yeah, it makes a ton of sense. I just had a question on the U.S. expansion plans. Obviously you're ramping up capabilities with some of the partnerships you've announced lately. There was this article in the New York Post, for those who didn't see it, highlighting how the NYPD was testing out Optimus and things like that. Can you just talk about maybe the progress you've made in public safety and whether or not you expect to see maybe some actual real orders from that sector over the medium term?
Yeah, I will. I'll talk about public safety from both an Optimus and Iron Drone standpoint. I may ask Tim to weigh in. Firstly, the demand cycle or the DFR investment cycle is very strong, coming off many years of public safety organizations working with drones, gaining experience in drones, and really learning how to harness the power of drones, specifically or particularly for emergency response. That's where Optimus comes in. We did highlight that we spent the month of February in Central Park, New York, working in New York Police.
We had a great experience there, and we are very excited about the opportunity that we see in New York. We did reference activities with a major city in the U.S. in the Northeast, I should say. At the same time, the NYPD did highlight the Iron Drone Raider, and they highlighted more broadly the need for public safety organizations to be able to deploy counter-UAS technologies. They are one of many public safety organizations and critical infrastructure operators that are c alling for this requirement because there's a s erious need to protect populations and citizens and critical infrastructure. We are engaged, and I don't want to give too many details prematurely, but I will say that NYPD is a leader, hands down. They're leading both in DFR and in the harnessing of the counter drone technologies. I think they're doing a great service to the industry by doing this.
At the same time, I want to h ighlight that the executive orders that were promulgated by President Trump and his administration back in early June are providing roadmaps so that public safety organizations can deploy these tools. Tim, I'm going to ask you, would you add anything to that conversation?
Yeah, I think the only thing that I'd add is that we're seeing customers come to American Robotics and Ondas for three key priorities. Number one, they're looking at the leadership to make sure that we're going to deliver these critical programs and systems to them. That's one reason we're getting those inbound calls. The second is our products work. When we show up and tell them that they're going to be autonomous and that we're going to be able to integrate within their DFR program, they know we're going to show up and do it. Lastly, they understand that our professionals on our teams understand the complicated regulatory environment and it's not going to slow them down. With those three critical pieces, those are the reasons we're getting phones and inbound calls on a daily basis.
Great. Helpful for me, and great to see the progress on both systems. Thanks again.
Thanks, Glenn.
The next question comes from Mike Latimore with Northland Capital Markets. Please go ahead. Mr. Latimore, is your phone muted accidentally? Okay, we'll go to the next question. Go ahead, sir. Thank you.
Thank you. Sorry about that. On the topic of fully autonomous, can you elaborate on that a little bit more maybe? Is there some metric that you can provide, I don't know, percentage of flights completed without a remote control or something? Could you elaborate on that a little bit as it relates to the competition? Are you more autonomous or h ow do you, how do you d efine that autonomy relative to the competition?
Okay, let's talk about both systems.
So y ou know, we install both of these platforms as infrastructure, starting with Optimus. I guess I'll highlight that we have now for several years been expanding a fleet in Dubai with our governmental public safety customer, and the performance of our Optimus drone infrastructure has been incredible in terms of reliability. They are now, they've got eight systems installed. They've added systems this year and are installing more. We expect them to continue to expand their fleet, and they're operating all of these systems from a single remote operating center. Nobody's touching these drones at all. At the end of the day, you can't get more autonomous than this. Before I turn to Iron Drone, I'll ask Eitan to shed any more light on that if we need to. Secondly, on Iron Drone, the autonomy on Iron Drone is off the charts again.
Installed as drone infrastructure, t he system is connected to ground radar, which detects the threat from a distance away. The drone is deployed instantly to react to that threat. And then, m id- flight, we have onboard intelligence. This is the Deepstream technology we emphasized earlier, where you've got a capability of computer vision fused with sensor t echnologies on board, where real time, we're hunting for the threat in space. We lock on it, and then we of course make the move to capture it, mitigate the threat.
Autonomy is not just a n avigation, it's actually in the hunting of the target itself and the security that we're providing. Ei tan, would you add anything to that?
Yeah, Eric. As you just said, Iron Drone Raider is really the state of the art. It's really the newest thing in the market and it's combat proven. That's also a very significant fact about this drone, Iron Drone Raider. You can't fly by a remote control. It's completely autonomous. Once you launch it, just watch it work. That's the amazing part of it. It's completely autonomous, it's using the state of the art algorithms, and it's just working in a very impressive way.
Let me just add relative to competition, I mean, there are some serious companies out here that we do compete with. At the same time, I do believe strongly that the proven reliability we have in and around our autonomy, and Tim touched on this just a moment ago, I still submit that it's not, it's unparalleled.
On the topic of a potential U.S. Federal program this year, can you elaborate a little bit on that? Which agency maybe, or the use case, the potential volumes involved? Is it a new program or are you going to try to replace somebody that's already in a program? A little more clarity on that would be great.
Yeah, Mike, I'm going to defer that question to a later date.
There is a vast majority. There's a surge in programs that are available across both platforms, and I think there's any number of them that will turn out to be platforms that we can capture. Our programs we can capture. Let's hold off on giving some details around that.
Okay, thanks a lot.
The next question comes from Max Michaelis with Lake Street Capital Markets. Please go ahead.
Hey guys, thanks for taking my question. Felt the conversation or the presentation was really interesting around the tech. Just one quick question from me. This is around 2026. Looking at one of your slides, you know that your 2026 outlook of $40 million from the OAS segment could potentially be conservative. This is due in part to military orders and U.S. DOD orders. You know, what are your internal estimates right now? Around 2026. I mean if things, if things are your bull case, your best case scenario, there's a lot of money flying around right now with some of the executive orders and spending bills.
Maybe give us an idea of what 2026 could look like maybe from your internal estimates if things go how you expect them to go. Maybe not on your conservative estimate, but maybe your bull case. Thanks.
Okay, I'm going to on that one also kind of defer to be specific, but I will highlight that many of the customers that we're working with, when you think about the size of the infrastructure, potential infrastructure build out, whether you're looking at the number of border miles that need to be protected, the number of military bases, the number of cities and how densified, how dense we will be building these networks, the numbers can get very, very large. I think at the bottom line is I think that what we've underwritten here for the base plan gives us a lot of cushion and we'll take it higher as the opportunities exist. We do want to build the credibility with our investors around delivering what we promise.
I think what we'll be doing over time, I really believe, is we'll be able to deliver or even over deliver what we're talking about here. I'll leave it at that.
Okay, maybe I ask one more follow up here. This is just around municipalities. I know you mentioned the city in the Northeast. Is there any other municipalities around the United States? Maybe you guys are in conversations with, maybe not the same size of a potential order, but maybe. Are you guys increasing your discussions with other municipalities around the United States?
Yeah, we are for sure. A little more context around that is, w e have been building the pipeline in the United States now for a couple of years. However, I will say that we have been resource constrained, and those resource constraints were firstly financial, just to be candid. That's not news to our investors.
We were doing the real h ard work in the midst of a war in Israel in advancing the Iron Drone Raider system, which of course the geopolitical climate, as we say, has been a h uge boon for our business.
There was a period of time where it was really all hands on deck to service that very near important demand to support our customer there t o advance Iron Drone Raider.
As you said today, we've got a maturing pipeline. It is likely to present upside to the models we're sharing with you today. Now we've got Mistral, which is going to be helping us leverage the even larger DoD, Homeland Security, and large state and local governments as well. I guess that's some context as to where we're at, but there's much more going on than the very large opportunity we have with this northeast city.
Awesome. Thanks for taking my question.
Thanks, Max.
The next question comes from John Roy with Water Tower Research. Please go ahead.
Thank you. Hey, I had one curious question, which is with the drone as a first responder, obviously this question has been solved, but how exactly do you guys handle the liability on that? Is that something that you have insurance for? Is that something that the clients handle? I'm really just curious.
Yeah, good question, John. Tim, I'll let you handle that.
Sure, absolutely. From a product manufacturing OEM standpoint, of course we're responsible for the product operating as its intended use. Just like Boeing selling aircraft to Delta Airlines, once that product transfers over to the operator, whether it be a police force for DFR operations, et cetera, they have to follow our OEM manuals. The Optimus went through an FAA type certification, one of the only companies in the world that achieved that, to have the maintenance manuals, the training manuals, so the actual operator is required to follow all of those things. If they don't and something happens, then that liability would, of course, shift to the user. More importantly, once it's being used and how it's being used, they have to maintain and make sure it's being operated to that intended use.
From a legal standpoint, it's no different than if we sold a different type of product. It just so happens it's an aircraft. We take great care in detail to make sure we're manufacturing it to those standards that we say we're doing it. Does that, did that answer your question?
Yeah, no, it does. It really does. Thank you so much. On a more, let's say, analyst type question, could you give us maybe some high level milestones, key milestones that we could look for in the drone, the anti-drone, and then the M&A kind of business lines that you have? Just curious if you could just give us some high level things we should watch for.
I think it's pretty simple, John. We're going to be building our backlog through orders and pulling those orders through to revenue, and I think that's the most important thing. That's our focus. We did highlight what the programmatic M&A opportunity is, and we shared some insight as to how those opportunities are progressing. I think you have to just look at those deal by deal. I don't think we're going to say we have to do anything right. It's always going to be our timing around that. It will be kind of when the deals are right for us to execute. We do think there's going to be quite a bit of potential in the coming months and quarters there to kick it off in a really strong way.
Great, understood. Thanks so much.
The next question comes from Don Deubler with Everly Capital. Please go ahead.
I just want to congratulate you guys on everything you've been doing. Your progress is just really showing through the last couple years. I've been following you guys a lot. Very bullish on you. My questions revolve around a bit of the customers, your products, and kind of the financial model. Do you feel your customers view you as a true platform company or as a product and like a solution, like product solutions company?
Thank you, Don. Great question. I believe the customers look a t us as a platform provider, what we're bringing is drone infrastructure. It's complex, it's highly regulated, and they need our expertise. It's that simple.
Yeah. As a follow up to that, I would ask when I look at your financial model and your products, how much of your revenue comes from, if any, a recurring service like you locking them into recurring service contracts going forward versus just the systems.
Great question. Okay, so yeah, the, you know.
There's really two models. We sell our platforms or our systems as infrastructure, and that is a sale. Then we have recurring maintenance and warranties on top of that. That's typically going to be 12% to 15% on an install annually, on install base that is growing. As I made, as you pointed out, we are targeting customers that are building fleets, essentially, right. Drone infrastructure.
While not technically recurring, we do think there's quite a lot of visibility on what I would call repeatable revenue. At the same time, there's a large market. Let me just dissect the market a little bit. Typically, that sale, right, the sale will be to militaries, homeland security officials, large customers that are state and local who are providing security to populations. For a lot of reasons, firstly, they have the expertise and the scale to operate these systems themselves. Because of compliance and privacy and all sorts of things that are true to homeland security and activities like that, they need to have total control of the system. At the same time, the more, I would say, the commercial markets in particular, they're going to look to increasingly adopt the system, the Optimus System, as a service model. We'll deploy the system with them.
We very often will even operate them from a remote operating center. We're just providing the data and the intelligence. They might get the live video feed, they may get the data analytics if we're providing inspection services. There's really going to be both models.
Is there a way or a thought of a way to try and enhance those services? Even if they want 100% control of a system, how you could be charging more on the units that are out there and for the platform that they have access to?
Yeah, sure.
We have demonstrated this. The systems are used for security and intelligence, and as we deploy them, the customers utilize them. Over time, our experience has been they want more intelligence. That gives us opportunities to enhance payloads and to bring data analytics, so machine learning, computer vision models, for example, more AI capabilities. Those services can be material as our installed base grows.
All right, thanks. That's super helpful to understanding a bit more. Congratulations again. Job well done.
Awesome, thanks Don.
The next question comes from Seth Wolfish with Ark. Please go ahead.
Hey, thanks for taking my calls, guys. To as much as a degree as you could answer, I'm just curious specifically to the NYPD as a potential customer, but I guess could be asked on a greater scale. In their case in particular, do you anticipate any challenges to winning a deal like that when you factor in a potential new mayor with a different attitude per se towards the NYPD? If that's something that you evaluate as you're building these relationships in general. That's all. Thank you so much.
Yes, Seth. I wish I could give m ore details, and I'm not quite sure. You know, my analysis of the political situation and what it means for any vendors to NYPD or the city of New York is kind of, I don't have a unique insight, but at the same time, I think we want to b e.
Let's just hold off a little bit. I think we want to continue our work there, and I think we've shared all the details that we're kind of able to at the moment.
Fair enough. Thank you, guys.
Awesome. Thanks, Seth.
The next question comes from Jared Berlin with Thames Capital Management. Please go ahead.
Hello. Thank you for your time and I'm sorry if this was in part addressed earlier. I was just hoping you can, I guess a two part question. Can you just lead me through the changes in your capital structure just in terms of, you know, clearly you've fortified it quite a bit. Cash on the balance sheet, the convertible debt obligations have come down, you have an ATM with which you're going to the market. Just, you could just give me a brief summation of where the capital structure was, where we are today. The second part is clearly in your deck. M&A is a big part of the strategy going forward.
How do you see that unfolding both from the perspective of capital to fuel that part of the strategy and the multiples that you anticipate paying, the range of multiples on revenue basis or whatever basis makes the most sense. That would be quite helpful, thank you.
All right, great, thanks, Jared, and nice to meet you.
Firstly, we do not have an ATM in place now, just some context as to, you know, where we sit today from a balance sheet perspective. I'll compare it to the beginning of the year because there has been this transformation. Including principal and accrued interest, unamortized debt, discounts, all that fancy stuff, on our convertible note, we had over $50 million of convertible debt at the holding company at the end of the year. That was held by a single investor, supportive investor, but a single investor, and that had been an overhang on the shares. However, as you've seen, we are demonstrating growth in the business and a very strong outlook. I think that along with a very strong end market expectations of a very big investment cycle here on the drone side, both commercial and military, dual use, you know, that's really helped bring awareness to our company.
We've attracted, you know, a lot of investment, which is great. That has allowed us to delever. That investor converted the bulk of those notes over the first couple of quarters and today that is just a little over $5 million. As we disclosed, we also were able to raise capital. Early in June we had a $46 m illion e quity offering, straight equity, that was again in early June. We have had some further, I'd say, capital structure cleanup with some warrants that have been exercised over the last few weeks. We have $67 million in cash at the end of the quarter and we are well capitalized as I outlined.
As it relates to M&A, I guess I'm not. I think on the multiples, the short answer is it's going to depend and vary. However, I think we have a significant opportunity for what I would refer to as arbitrage in our markets. There's a number of, and we talked about our pipeline, but there's a large number of companies who are doing extremely good work, difficult work to build autonomous systems, special capabilities and to do these AI enabled systems. This deep technology, the integration of hardware and software, it's not something you go from a PowerPoint to operational system in a year. It takes many years, often 10 years. Okay, that time of course is money.
What we've been able to see o ver time, is that the companies that h ave m ade those investments, been able to get into the field with customers, to be able to get to product market fit, acceptance, they're starting to come out the end. Right?
Airobotics and Iron Drone are great examples of that. Those companies are coming out.
However, t hey were venture backed five, seven, ten years ago and those investors are tired and can't make that transition to building an operating company. All that investment of operating capital that's described, and what I'm telling you is because of that, the multiples are going to be low. I'll just say that low relative to where we're going to trade because we've made those hard investments, our investors have supported that, and now we have that operating flywheel going. I think we're going to have an opportunity to create tremendous value in these acquisitions w hen we acquire the companies.
We're going to grow them faster because we have this operational capability, then they would have been able to grow in and of themselves. I think this is a win-win scenario. It's a win for the investors. Management teams that we're going to take, i t's also a win for our investors.
Thank you so much. Really appreciate the insight.
This concludes our question and answer session. I would like to turn the conference back over to Mr. Eric Brock for closing remarks.
Okay.
Thank you, operator. As we wrap the call, I want to thank you again for spending time with us today. As we outlined, we have huge momentum in the business, and we're not content with just a linear growth curve in this booming industry. We're mission driven. We have an opportunity to build an i mportant and valuable company, and that is what our business plan is poised to deliver.
We're going to work extremely hard to ensure success, and I look forward to sharing more updates on our progress in the weeks, months, and quarters ahead. I want to thank you again for attending, and have a great afternoon.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.